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BPKN Recommends Cooking Oil Priced at Rp13,500 per Liter Again

7 April 2022 15:36 WIB

TEMPO.CO, JakartaThe National Consumer Protection Agency (BPKN) recommends the government restore the policy on the retail price ceiling (HET) for cooking oil and the domestic market obligation (DMO) for crude palm oil (CPO) producers or exporters to meet domestic supply.

The agency head Rizal E Halim said his side suggests HET for bulk cooking oil at Rp11,500 per liter, simple-packaged cooking oil at Rp13,500 per liter, and premium packaged cooking oil at Rp14,000 per liter.

“We have calculated this based on the production cost and its economic value by taking into account the production inputs used in producing palm cooking oil, inflation that affects purchasing power, and the margin applied by the industry so we get those figures, as well as a hike in fertilizer by 5 to 6 percent,” Rizal said in a press statement in Jakarta, Thursday, April 7.

He added that the recommendation has been submitted to President Joko “Jokowi” Widodo.

According to him, letting the price of cooking oil to the market in the current situation will make people, especially those on the poverty line, fall below the poverty line.

The BPKN also assessed that it is necessary to restore the DMO for cooking oil policy at 30 percent as a requirement of export permits for the palm oil industry. The DMO at 30 percent is considered sufficient to meet the domestic supply.

“To carry out the two policies, we certainly recommend monitoring and implementation of strict sanctions by involving various stakeholders, particularly the police, food task force, and related ministries to oversee the upstream to the downstream process,” said Rizal.

Read: Jokowi Urges Cash Aid for Cooking Oil to Be Disbursed before Eid al-Fitr

ANTARA



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